KST Indicator

Martin Pring's KST indicator combines the Rate Of Change Oscillator ("ROC")
for four different time periods into one smoothed indicator.
The aim is to signal major trend moves on a timely basis while eliminating most of the whipsaws associated with shorter-term oscillators.

The KST indicator is primarily used to trade trends and should not be used in
a ranging market. Signals are taken when KST crosses its signal line, calculated
as a 9-month simple moving average of KST.

Weight the four Smoothed ROCs according to their period.
The sum of the four periods is 63 months, so values for the 9-Month Smoothed
ROC will be multiplied by 9/63, the 12-Month ROC by 12/63, and so on...

Sum the weighted values to calculate the KST indicator.

Calculate the signal line using a 9-Month Simple Moving Average of KST.

I find that the KST suffers from the same failing as most trend-following
indicators: it whipsaws too often, especially in an up-trend. Comparing trend
start signals to the long-term Coppock Indicator
on the S&P 500 index for the last 25 years, KST reacts slower, but avoids
the false signal late 2001 when Coppock turns up while below the zero line.